Washington – The Computer & Communications Industry Association will testify today before the Maryland Senate Finance Committee on pricing algorithms. CCIA will caution that SB 387, titled the “Protection From Predatory Pricing Act,” could unintentionally restrict common, consumer-friendly pricing practices. While the association supports efforts to address unfair pricing conduct, it warns that the bill, as drafted, risks sweeping in routine retail strategies that help lower prices and reduce waste.
SB 387 seeks to regulate certain pricing practices, including those involving dynamic pricing and the use of consumer data. CCIA notes that dynamic pricing has long been used across industries, including food retail, where adjusting prices based on demand, inventory levels, or expiration dates can help retailers reduce waste and offer discounts to consumers. The association cautions that the bill’s broad definitions of “dynamic pricing” and “surveillance data” may blur the line between harmful conduct and ordinary business practices.
CCIA is particularly concerned that the proposal could discourage innovation and competition by creating compliance risks for companies using widely accepted pricing tools. The association warns that unclear standards may lead businesses to adopt more conservative pricing strategies, potentially resulting in higher costs and fewer choices for Maryland consumers.
The association has submitted recommended amendments to help lawmakers address predatory practices without undermining legitimate retail activity. These include narrowing the bill’s scope to focus on individualized price increases driven by surveillance-based profiling, aligning definitions of personal data with existing Maryland law, and limiting enforcement to the Attorney General rather than including a private right of action.
CCIA supports targeted, risk-based consumer protection policies and will encourage lawmakers to pursue balanced solutions that protect consumers while preserving innovation, competition, and access to lower prices.
The following statement can be attributed to Megan Stokes, State Policy Director at CCIA, who will testify before the Senate Finance Committee:
“Maryland lawmakers are right to examine unfair pricing practices, but SB 387’s broad approach risks capturing everyday pricing strategies that help retailers respond to demand and offer lower prices to consumers. Effective policy should clearly distinguish between harmful surveillance-based pricing and common dynamic pricing practices. With targeted amendments, lawmakers can protect consumers from predatory conduct while maintaining a competitive and innovative retail marketplace.”
